Google offering employees $5,000, nation's No. 2 bank to give employees in three cities $3,000 if they buy a hybrid.

June 7, 2006: 4:29 PM EDT

NEW YORK (CNNMoney.com) -
Bank of America said Wednesday it will reimburse $3,000 to thousands of employees who buy a new hybrid vehicle, joining other companies offering similar deals.

The nation's No. 2 bank will make the rebates available to more than 21,000 employees who live within 90 miles of Boston, Charlotte, and Los Angeles, the company said in a statement. The bank's headquarters are in Charlotte.

"The hybrid program expands our commitment to the environment and helps our associates to participate in making a difference while cutting down on their commuting costs," Anne Finucane, head of the company's environmental council, said in the statement.

"We are pleased to be one of the first corporations offering this benefit and strengthening our long-standing leadership on environmental issues."

The bank described the offer as a pilot program and said it will evaluate participation to assess how it could be rolled out to all employees.

The program is being offered to all full-time and part-time employees working at least 20 hours a week in the three metropolitan areas covered by the bank's pilot program.

Bank of America is not the only company offering incentives to employees buying hybrid vehicles.

Google (Research) and software developer Hyperion Solutions (Research), both based in California, offer their employees $5,000 if they buy a hybrid car with a gas mileage rating of at least 45 miles to the gallon.

And closely held Integrated Archive Systems Inc., located in Palo Alto, Calif., offers a similar, but more lucrative rebate program to its workers, promising $10,000 to those buying a hybrid.

Hybrid cars run on a gasoline engine and an electric motor, allowing for better fuel economy and lower emissions.

Many hybrid owners are also eligible for federal tax breaks, and some highways allow drivers to use high-occupancy vehicle lanes without carrying a passenger if they are driving a hybrid.